What is Invoice Finance & How is it Different from Debtor Finance

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What is Invoice Finance & How is it Different from Debtor Finance

What happens when your customers are late in paying their invoices? It creates a gap in the cash flow of your business disrupting its financial constancy, carrying the risk of capital depletion. How to fill up that gap? Well, the business can resort to invoice financing from lenders either directly or through a finance broker, gaining access to quick funding. Don’t get it confused with debtor finance; that’s a separate genre of financing for businesses. We will come to that after explaining everything that you need to know about invoice finance. Invoice Finance Acquiring invoice financing or invoice discounting allows businesses to derive funding against the pending invoices of the customers/clients. It is one of the most sought-after ways for businesses to bridge the gap in the cash flow caused by pending invoices. The lender would set a limit on the financing allowing the borrower to get up to 95% of the pending invoice amount.


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